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KBS are the systems based on knowledge base. Knowledge base is the database maintained for knowledge management which provides the means of data collections, organization and retrieval of knowledge. The knowledge management manages the domain where it creates and enables organization for adoption of insights and experiences. There are two types of knowledge bases. a. Machine readable knowledge bases: The knowledge base helps the computer to process through. It makes the data in the computer readable code which makes the operator to perform easier. Such information sare used by semantic web. Semantic web is a web that will make a description of the system that a system can understand. b. Human readable knowledge bases: They are designed to help people to retrieve knowledge. The information need to be processed by the reader. The reader can access the information and synthesize their own. KBS refers to a system of data and information used for decision making. The system is automated to work on the knowledge based data and information required in a particular domain of management activity. The processing is done based on the past decisions taken under suitable conditions. Decision making is based on the fact that the condition is similar to the past situation hence the decision is also is similar. Examples of KBS are intelligent systems, robotics, neural networks etc. Decision Support Systems (DSS) DSS is an interactive computer based system designed to help the decision makers to use all l the resources available and make use in the decision making. In management many a time problems arise out of situations for which simple solution may not be possible. To solve such problems you may have to use complex theories. The models that would be required to solve such problems may have to be identified. DSS requires a lot of managerial abilities and managers judgment. You may gather and present the following information by using decision support application: • Accessing all of your current information assets, including legacy and relational data sources, cubes, data warehouses, and data marts • Comparative sales figures between one week and the next • Projected revenue figures based on new product sales assumptions • The consequences of different decision alternatives, given past experience in a context that is described. Manager may sometimes find it difficult to solve such problems. E.g. – In a sales problem if there is multiple decision variables modeled as a simple linear problem but having multiple optima, it becomes difficult to take a decision. Since any of the multiple optima would give optimum results. But the strategy to select the one most suitable under conditions prevailing in the market, requires skills beyond the model. It would take some trials to select a best strategy. Under such circumstances it would be easy to take decision if a ready system of databases of various market conditions and corresponding appropriate decision is available. A system which consists of database pertaining to decision making based on certain rules is known as decision support system. It is a flexible system which can be customized to suit the
The system goes through a series of multiple checks of the various parameters used in business decision making. the manager can chose to update the database with such decisions.g. The querying process of the OLAP is very strong. What do you understand by service level Agreements (SLAs)? Why are they needed? What is the role of CIO in drafting these? Explain the various security hazards faced by an IS? Ans. various data rates. DSS is a consistent decision making system. It helps the management take decisions like which month would be appropriate to launch a product in the market. It can be used to generate reports of various lever management activities. what should be the production quantity to maximize the returns. In practice. the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance. It is capable of performing mathematical calculations and logical calculation depending upon the model adopted to solve the problem. This will strengthen the DSS to take decisions in future. what should be the stocking policy in order to minimize the wastage etc. The output is sent only after thorough verification of the input facts fed to the system. Each adjoining faces with common vertex may be considered to represent the various parameter of the business situation under consideration. It can work in the interactive mode in order to enable managers to take quick decisions. A service level agreement (frequently abbreviated as SLA) is a part of a service contract where the level of service is formally defined. A model of OLAP may be well represented in the form of a 3D box. There is no scope for errors in decision making when such systems are used as aid to decision making. As an example. There are six faces of the box. Whenever manager feels that a particular decision is unique and not available in the system.) . Many big companies use OLAP to get good returns in business. A DSS has the capability to update its decision database. You can summarize the benefits of DSS into following: • Improves personal efficiency • Expedites problem solving • Facilitates interpersonal communication • Promotes learning or training • Increases organizational control • Generates new evidence in support of a decision • Creates a competitive advantage over competition • Encourages exploration and discovery on the part of the decision maker • Reveals new approaches to thinking about the problem space Online Analytical Processing (OLAP) OLAP refers to a system in which there are predefined multiple instances of various modules used in business applications. MTTR.organization needs. E. Product etc Q2. A nearest match is found analytically and the results displayed form the database..: Region. internet service providers will commonly include service level agreements within the terms of their contracts with customers to define the level(s) of service being sold in plain language terms (typically the (SLA) will in this case have a technical definition in terms of MTTF. Sales & demand. OLAP is also referred to as a multi dimensional analytical model. etc. You can consider decision support systems as the best when it includes high-level summary reports or charts and allow the user to drill down for more detailed information. Any input to such a system results in verification of the facts with respect to the available instances.
and not how the service provider delivers that service. This internal benchmarking can also be used to market test and provide a value comparison between an in-house department and an external service provider. as well as the equipment comprising the applications. operation. perhaps in an innovative way. he needs to do what other executives do and have his own business metrics and performance measurements. This latter type of requirement is becoming obsolete as organizations become more demanding and shift the delivery methodology risk on to the service provider. The SLA records a common understanding about services. It is important to note that the "agreement" relates to the services the customer receives. is to implement service level agreements (SLAs) with business units. may be used by internal groups to support SLA(s). This can be a legally binding formal or informal "contract" (see internal department relationships). At a minimum.' But there is no real business measurement there. penalties may be agreed upon in the case of non-compliance of the SLA (but see "internal" customers below). The "level of service" can also be specified as "target" and "minimum." The (expert) service provider can demonstrate their value by organizing themselves with ingenuity. performance. or other attributes of the service. through a specification (a servicelevel specification) and using subordinate "objectives" other than those related to the level of service. and warranties. they say. It sets the expectation on the technical areas of the CIO's operations. SLAs have been used since late 1980s by fixed line telecom operators as part of their contracts with their corporate customers. but CIOs generally do not because IT has always been viewed as a cost center. Organizations can also specify the way the service is to be delivered. Contracts between the service provider and other third parties are often (incorrectly) called SLAs — as the level of service has been set by the (principal) customer. Role of CIO in drafting SLA’S One of the major responsibilities of the CIO is to establish the credibility of the systems organization. The SLA may specify the levels of availability. The first step. In some contracts. such as billing. Service-level agreements are. One benefit of this can be to enable the quality of service to be benchmarked with that agreed to across multiple locations or between different business units. and I did them well. Operating Level Agreements or OLA(s). If the CIO wants to be taken seriously. responsibilities. Measurements in IT tend to be vague and lacking in context. infrastructure. This practice has spread such that now it is common for a customer to engage a service provider by including a service-level agreement in a wide range of service contracts in practically all industries and markets." which allows customers to be informed what to expect (the minimum). Each area of service scope should have the "level of service" defined. This type of agreement is known as an "input" SLA. so that he can effectively measure his internal business performance. and networks under the CIO's control. 'I had 14 projects last year. "output" based — the result of the service as received by the customer is the subject of the "agreement. they should set up what is expected and what levels of service the equipment will provide.A service level agreement (SLA) is a negotiated agreement between two parties where one is the customer and the other is the service provider. The systems department should not only focus on providing better service to the various lines of business but also help businesses operate better. there can be no "agreement" between third parties (these agreements are simply a "contract"). guarantees. How many projects should the manager have had? Did he really have the capacity to handle 14 projects? A CIO should explore running their area more like a service operation rather than a cost center. by their nature. however. Other business departments have them. capability. and knowledge to deliver the service required. Internal departments (such as IT. serviceability. HR. and develop metrics that track the performance of the information systems staff. whilst providing a measurable (average) target value that shows the level of organization performance. and Real Estate) in larger organization have adopted the idea of using service-level agreements with their "internal" customers — users in other departments within the same organization. . For example. priorities.
particularly when it comes to apportioning staff time. replaced. iv) Fire hazard: it can happen because of electrical short circuits. One of the major roles of the CIO is to make the organization information systems savvy and increase the technological maturity of the information systems organization. flammable liquids etc. vii) General hazards: this category covers many more hazards which are not covered anywhere and difficult to define and come spontaneously. and to encourage their use.The underlying SLAs should be some sort of a chargeback system with business units. it is easy for applications to linger long after they should be gone. They are not frequent hazards but if they happen they destroy the things or ruin them. and there are other products that can monitor hardware performance. People. . all the components of a system are involved. There are software’s to help with the people picture. how this can help them perform better. The second part of the IT operations equation is computer equipment. and when it needs to be refurbished. software and hardware errors course the biggest problem. If information systems are now providing a service. or disposed of. There are power cuts and sometimes high voltage serge destroys a sensitive component of the computer. vi) Natural Disasters: Natural disasters are not controllable. neglect and incompetence. v) Sabotage and riots: sometimes the employees destroy the computer centre in case of strike. etc. Most IT organizations do not have any idea of the life cycle of an application – how long they want it to last. lockout or there may be chances of riots in the area. tornadoes and lightening. and for companies to spend far too much money on maintaining ailing applications. This can be done through – a) Infiltration and industrial espionage b) Tapping data from communication lines c) Unauthorized browsing through lines by online terminals. A major part of the CIO's job is to make the users aware of the opportunities arising as a result of technical innovations. the staff needs to understand where the service is being used to be properly remunerated or to demonstrate where the value is. More dangerous are the problems which are created by human beings due to the omission. CIOs need to institute life cycle management with their applications and computer equipment. Finally. Lacking this knowledge. Examples are earthquake. and CIOs must have a firm handle on how that equipment is being used. cheating or deceit. The information systems management also has the job of helping the end users adapt to the changes caused by information systems. iii) Power and communication failure: In some locations they are the most frequent hazards than any other else because availability of both of them depends upon the location. floods. Sometimes communication channel are busy or noisy. and familiarizing them with computers and information systems applications. ii) Fraud and unauthorized access: This hazard is due to dishonesty. Security Hazards faced by an Information system: Security of the information system can be broken because of the following reasons: i) Malfunctions: In this type of security hazard. such as network and server uptime.
seeking information requirement or needs is easy as against a very high level of uncertainty. They do not explain how the processing takes place. Explain DFD & Data Dictionary? Explain in detail how the information requirement is determined for an organization? Ans. • Make sure the diagrams are balanced Data Dictionary The data dictionary is used to create and store definitions of data. location. such as entities. DFD can also be drawn in increasing levels of detail. In spite of these difficulties. The difficulty to determine a correct and complete set of information is on account of the factors given below: 1. The data dictionary also stores some of the description of data Structures. The data dictionary can be used to retrieve the definition of data that has already been used in an application. 2.the boundary of the system. attributes and relationships. The nature and the variety of information in precise terms. If the uncertainty is low. inputs and outputs to end from the processes. starting from the low to the high level of uncertainty. • Number the processes consistently.Data flow diagrams represent the logical flow of data within the system. The capability constraint of the human being as an information processor. Determining the Information Requirement The sole purpose of the MIS is to produce such information which will reduce uncertainty risk in a given situation. They are: Asking or interviewing Determining from the existing system Analysing the critical success factors Experimentation and modelling. DFD do not explain how the processes convert the input data into output. sometimes called files or databases. The open-ended boxes represent data stores. The numbers do not imply the sequence. Rounded rectangles represent processes that transform flow of data or work to be done. The ability of the decision-makers to specify the information.Q3. Reluctance of decision-makers to spell out the information for the political and the behavioural reasons. A number of guideline should be used in DFD • Choose meaningful names for the symbols on the diagram. flows. external entities stores. DFD:. DFD can easily illustrate relationships among data. Arrow represents data flows. • Avoid over complex DFD. It is source or destination of data. Rectangle represents external agents. DFD uses few symbols like circles and rectangles connected by arrows to represent data flows. Asking or Interviewing In this method a designer of the MIS puts questions or converses with the user of the information and . a problem solver and a decision-maker. 3. It can also have software to update itself and to produce reports on its contents and to answer some of the queries. starting with a summary high level view and proceeding o more detailed lower level views. format for storage and other characteristics. 4. There are four methods of determining the information requirements. methods are evolved based on the uncertainty scale. These data stores correspond to all instances of a single entity in a data model.
the Authority. etc.determines the information requirements. have a well determined. in a high technology business. the information required to manage shares of the company are determined through the rules and regulations laid down by the Company Law Board. An experienced designer is able to analyse critically the answers given to the ques¬tions and determine the correct information requirement. the pay roll. research studies which can determine the information requirement. the designer and the user of the information resort to this method for determining the information requirement. group consensus can be sought to get the most feasible set of answers. "Which are the raw materials which can be used in a product?" In open questions. the management of the technology becomes the critical function. hand books. Irrespective of the type of organization and business. The manager of the shares department has very little additional information need. The fund of knowledge is available from the textbooks. handbooks. For example. For example. and has been designed out of experience gives straightaway the requirement of information. the financial accounting. Many times a function is singularly critical to the successful functioning of a business organization. Analyzing the Critical Success Factors Every business organization performs successfully on efficient management of certain critical success factors. ninety per cent of the information requirement is common and the balance ten per cent may be typical to the organization or the business. information requirement. the management of service becomes a critical factor. When the user has to select one answer from a finite set of answers a closed question should be asked. For example. manuals. Or in a service organization. The experts or experienced users are asked to give their best answers— this approach is called the Delphi method. marketing and service becomes the critical function. In any situations. systems from other companies can give additional information requirements. The information requirements of such organization largely relate to these critical factors. the inventory control. a brain storming session is performed to cover all possible answers to the questions. etc to confirm the information needs. The experimentation would decide the methodology for handling the complex situation. the accounts payables. This method is adopted when the rules and decision methods are outside the purview of the decisionmaker. If the method is finalised. when the user has no precise knowledge but has an ability todetermine all answers to select one out of them? For example. For example. In a consumer industry. the information needs are determined as . systems such as the accounts receivables. the manager determines the information needs and the designer of the MIS can always fall back on the prescribed law books. They are determined or imposed by external sources such as the Government. The analysis of these functions or factors will determine the information requirements.. Putting the questions is an art and it should be used properly to seek information. Determining from the Existing System In a number of cases the existing system. "Which are the raw materials used for making a product?"But an open question is put. theory and textbooks. In all such functions. The managers in the operations and the middle management use the existing systems as a reference for determining the information requirements. Other factors are important and play a support role in the functioning of the organization. the principles. etc. the answers may not be immediate but can be obtained by surveying the domain knowledge of the user. which needs to be determined separately. Experimentation and Modelling When there is total uncertainty. the system designer has to test the validity of all the answers independently. When multiple users or several decision-makers in similar functions or positions are involved. When several users are involved. In all these methods. which has been evolved after a number of years.
where his aspirations or desires are met best. 4 Since there are known set of decision alternatives and knows their outcomes fully. based on some goal or objective criterion. and ranked for selection. and the plant location. Deciding on the possible product diversification lines. if implemented Open Decision Making System The manager does not know all the decision alternatives. 3 The manager can choose one of them. are some decision-making situations which fall in the category of the open decision-making systems. the pricing of a new product. In reality. 2 The manager has a model. rule or model is available to study and finalise one decision among the set of decision alternatives. The information requirements determined through such methods undergo a qualitative change as the users get the benefit of learning and experience and the needs may undergo a change or get replaced completely Q4 Distinguish between closed decision making system & open decision making system? What is ‘What – if‘ analysis? Why is more time spend in problem analysis & problem definition as compared to the time spends on decision analysis? Ans. Sometimes models are used for deciding the initial information needs and they are modified during the implementation stage. No method. The knowledge of the outcome may be a probabilistic one. it is easier to decide. 5 Few examples are a product mix problem. therefore. What if analysis What if analysis is where decisions are made using a model of the problem for developing various solution alternatives and testing them for best choice. and there are methods available that can be tested. an examination system to declare pass or fail. Closed decision making system and open decision making system Closed Decision Making System 1 There are known set of decision alternatives and knows their outcomes fully in terms of value.they have been evolved through the experimentation. Test marketing of a product is an approach of the experimentation to decide the correct marketing strategy. then the decision-making system is termed as an open decision-making system. tested. or an acceptance of the fixed deposits. It is difficult to decide an objective or a goal and. the considered values of variables or relationship in the model . the manager resorts to that decision. The model is built with some variables and relationship between variables. a method or a rule whereby the decision alternatives can be generated. If the manager operates in an environment not known to him. The outcome of the decision is also not known fully.
Problem analysis. We can start by collection information to find the causes of the problem and the desired goal. Problem analysis and definition is a time consuming process. It involves accessing the current state. Reorder level) lead time is assumed fairly constant and stable for a planning period. The method of finding and collecting error information depends on the state of the hardware at the time of the failure. • Gather sufficient information to communicate with a service provider and quickly determine the service action that needs to be taken.may not hold good and therefore solution needs to be tested for an outcome. and want to do something about it. Minimum Stock. if the considered values of variables or relationship change. we speak consciously of the situation someone is or is not content with. This procedure directs you to one of the following places to find error information: • Hardware Management Console (HMC) error logs • The operating system's error log • The control panel Problem definition: Every problem starts by defining the definition of the problem. A situation is only a problem if the problem-owner wishes to. As without a proper definition we cannot move ahead with a solution to the problem. problem definition and decision analysis: Problem Analysis: If there is a problem. This is the expected state. And that needs to be analyzed and tested out if they solve the problem. A problem definition is usually set up at the end of the problem analysis phase. including the assumed patterns of behaviour of the people and organizations involved. The existing situation. A description of the situation is therefore a description of a state plus the relevant causal model(s). however. · If there is a problem identified.' For example. Such type of analysis can be done for purchase price change. For defining a problem this implies that it is not sufficient to describe the existing state. we collect information what that is a problem and what is the desired state. · The starting point of a problem definition is the information gathered in the problem analysis stage. Using ‘What if analysis’ managers can test out the outcomes by varying the variables and it creates confidence in decision-making model by painting a picture of outcomes under different conditions. in decision-making problem about determining inventory control parameters (EOQ. Problem analysis helps to determine the nature of a problem encountered on your system. This method of analysis is called 'what if analysis. the inventory parameters are calculated. factors that are the cause of the problem and the desired state we need to reach to solve the problem. This implies that a situation must be conceivable that is more desirable than the present one: the goal situation. Safety Stock. Based on this. Such analysis helps a manager to take more learned decisions. that need to be accessed and analyzed why that is a problem. Therefore. This is a data collection process. Maximum Stock. Inventory manager wants to know how the cost of holding inventory will be affected if lead time is reduced by one week or increased by one week. can also be formulated in such a manner that a problem does arise. The model with changed lead time would compute the cost of holding inventory under new conditions. demand forecast variations and so on. . The different aspects surrounding the design problem have been analysed and should be taken into account in the problem definition. The problem analysis information is used to: • Determine if you can resolve the problem yourself.
printer. It eliminates the need of storing the conventional office flat files and box files which requires lots of space. It does all mathematical calculations. fax machines. b) Storage – A PC can store large quantity of data in a small space. and customers etc to discuss about business activities. Business people across the globe travel a lot to meet their business partner. Hardware support for MIS Generally hardware in the form of personal computers and peripherals like printers. Q5 How hardware & software support in various MIS activities of the organization? Explain the transaction stages from manual system to automated systems? Ans. Examples of input unit –Keyboard. colleagues. storing details in the memory etc. copier. Today a PC with internet is used as a powerful tool of communication for every business activity. we have a goal and how to achieve that goal by applying the necessary changes. Advantages of a PC : Advantages a personal computer offers are – a) Speed – A PC can process data at a very high speed. Examples of output unit – Monitor. <!--[if !vml]--><!--[endif]--> Input unit is used to give input to the processor. commodities and services. interpret and use rules and guidelines for decision-making. bar code reader etc. Essentially Internet and networks enable integration of information. scanner. mouse. and provide access to everybody from anywhere. The storage system in a PC is such that the information can be transferred from place to another place in electronic form. The process is executed through analytical modelling of problem and solution. facilitate communication. And software solutions make them faster and self-reliant as they can analyze data information. Organization of Business in an E enterprise – Software Applications in MIS Internet technology is creating a universal bench or platform for buying and selling of goods. They are: . After a problem is analyzed and defined. It is possible to obtain mathematical results correct up to a great degree of accuracy. e) Conferencing – A PC with internet offers facility of video conferencing worldwide. logical tasks. It can process millions of instructions within fraction of seconds. Output unit is used to give output s from the computer. we need to take a decision. If we have concrete proof that the steps to be implemented will solve the problem then the decision making process is not such a time consuming task as compared to problem analysis and definition. speakers etc. c) Communication – A PC on the network can offer great support as a communicator in communicating information in the forms of text and images. In a computer the processor is the CPU – Central Processing Unit. scanners etc are used in organization to support various MIS activities of the organization. By video conferencing inconvenience of traveling can be avoided. A processor refers to unit which processes the input received the way it has been instructed.Decision Analysis A decision is made but such decision needs to be analysed for conditions and assumptions considered in the decision model. Once this is in place. These enabling capabilities of technology have given rise to four business models that together work in an E enterprise organization. d) Accuracy – A PC is highly reliable in the sense that it could be used to perform calculations continuously for hours with a great degree of accuracy.
• Enquiry processing • Order preparation • Order placement • Order confirmation • Order planning • Order scheduling • Order manufacturing • Order status monitoring • Order dispatching • Order billing • Order receivable accounting • Order payment processing The entire process in parts or full can be handled through these technologies and software solutions. transparent and cheaper. For example. and is a resident on the network. The technology adds speed and intelligence in the business process improving quality of service to the customer.· E business · E communication · E commerce · E collaboration These models work successfully because Internet technology provides the infrastructure for running the entire business process of any length. It has dramatically reduced cost of data and information processing. information can flow seamlessly from any location to any other location. Low cost connectivity physical. products or services is made up of the following components. its sending and storing. competitive advantage. These technologies help to save time. These basic capabilities of Internet have given rise to number of business models. the technology is flexible and capable of handling any business models such as: • Retailing. Distribution & Selling • Outsourcing. Once everyone is connected electronically. Auctioning • Manufacturing. product information is available on an organization website which also has a feature of order placement. It is capable of linking to disparate systems such as logistics. Learning. Internet has enabled organizations to change their business process and practices. Information and information products are available in electronic media. Training. Trading. and conversion has become significantly faster. collaboration. Further. It provides important strategic. monitor and control the business operations through the workers located anywhere. track. resource and enable faster decision making. It also provides email and other communication capabilities to plan. Consulting . Such order is then placed directly on the order board for scheduling and execution. data acquisition and radio frequency used systems and so on. rejection is communicated instantaneously to the customer. The business process of serving the customer to offer goods. An order placed is processed at the backend and status of acceptance. Subcontracting • Servicing. Some of them are given in Table <!--[if !vml]--><!--[endif]--> The Internet and networks provide platform and various capabilities whereby communication. virtual and universal standards of Internet technology make it a driving force to change conventional business model to E business enterprise model.
The resultant effect is the reduction in cost of business operations. and being independent. use digital technologies and work on databases. Internet capabilities have given E business enterprise a cutting edge capability advantage to increase the business value. business partners. All this is possible due to Internet and web moving traditional paper driven organization to information driven Internet enabled E business enterprise. The cost of business operations has come down significantly due to the elimination of paper driven processes. broad in scope and a learning organization. improved customer loyalty and retention and better quality offer to the customer. We go into details of each one of them. knowledge bases. managers. customers and vendors. E business enterprise is more process driven. Transformation stage manual systems to automated systems The manual system which was prevalent in the organizations before industrial revolution was slowly transformed into digital form by means of computer and related electronic instruments. The business processes are . reduction in inventory. vendors. flat in structure. It has empowered customers and vendors / suppliers through secured access to information to act. most of the things are electronic. wherever necessary. faster communication and effective collaborative working. It has opened new channels of business as buying and selling can be done on Internet. traditional business organization definition has undergone a change where scope of the enterprise now includes other company locations. Technology enabled and uses its own information and knowledge to perform. and decision support systems. It is lean in number. application packages. product. directories and document repositories. Four major applications mentioned earlier make this achievement possible. and project or matrix organization of people but E organization where people work in network environment as a team or work group in virtual mode. E business enterprise is open twenty four hours. customers transact business anytime from anywhere. It is no longer functional. In E business enterprise. A transformation had to necessarily go through the following stages : a) Appraisal of the procedures b) Types of documents c) Storage systems d) Formulations and coding e) Verification and validation f) Review g) Documentation Q6 Compare & Contrast E-enterprise business model with traditional business organization model? Explain how in E-enterprise manager role & responsibilities are changed? Explain how manager is a knowledge worker in E-enterprise? Ans. They are supported by information systems. The effect of these radical changes is the reduction in administrative and management overheads. It enables to reach new markets across the world anywhere due to communication capabilities. It has no geographic boundaries as it can extend its operations where Internet works. Managing the E enterprise Due to Internet capabilities and web technology. In E business enterprise traditional people organization based on 'Command Control' principle is absent. It is replaced by people organization that is empowered by information and knowledge to perform their role. faster delivery of goods and services to the customers.
Buyers and sellers through Internet drive the market and Internet based web systems. decision support. insurance. To achieve the said benefits of E business organization. They are using E business. SCM. Ecommerce Solutions to reach faraway locations to deliver product and services. and laws of security are to be adhered strictly. it is necessary to redesign the organization to realize the benefits of digital firm. white goods and many such goods are bought and sold on Internet. scope of operations. automated. On the same lines. The role of MIS in E business organization is to deal with changes in global market and enterprises. Books. namely: • Domestic business to global business. and knowledge management systems. The business processes across the organization and outside run on E technology platform using digital technology. SCM. • Industrial manufacturing economy to knowledge based service economy. CDs. The basis of conventional organization design is command & control which is now collaborates & control. These transformations have made conventional organization design obsolete. E money are the examples of the Ecommerce application. country specific accounting practices. electronically transacted business process. • Enterprise Resource Management to Enterprise Network Management. network. Internet and networking technology has thrown another challenge to enlarge the scope of Organization where customers and vendors become part of the organization. reporting mechanisms. increase in profit and productivity and so on. Get rid of rigid established infrastructure such as branch office or zonal office. work practices. efficiency. E audit. . The enterprise solutions like ERP. The comparison between conventional Organization design and E enterprise is summarized in Table <!--[if !vml]--><!--[endif]--> Comparison between Conventional Design and E Organization In E enterprise. and business processes at large. vendors and business partners. MIS for E business is different compared to conventional MIS design of an organization. This is just not a technical change in business operations but a cultural change in the mindset of managers and workers to look beyond the conventional organization. Make use of groupware technology on Internet platform for faster response processing. The paradigm shift to E enterprise Has brought four transformations. computer. This technology offers a solution to communicate. workflows. It is effectively used for strategic planning for survival and growth. & use of Credit cards. Today most of the business organizations are using Internet technology. Knowledge management system is formally recognized as a part of MIS. Smart card. healthcare are being managed through Internet E banking. Another challenge is to convert domestic process design to work for international process. The new channel of business is well known as Ecommerce. Automate processes after reengineering the process to cut down process cycle time. Hence today's business firm is also called E enterprise or Digital firm. E billing. banking. which uses Internet and web technology and uses E business And Ecommerce solutions. Allow people to work from anywhere. coordinate.conducted through enterprise software like ERP. The organization structure should be lean and flat. This Change has affected the organization structure. and CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN). is a reality and is going to increase in number. business is conducted electronically. competitiveness and profitability. Buying and selling is possible on Internet. and CRM supported by data warehouse. and collaborate with customers. The digital firm. MIS produces more knowledge based products. It means changing the organization behavior to take competitive advantage of the E business technology. where integration of multinational information systems using different communication standards. and wireless technology for improving the business performance measured in terms of cost. • Manual document driven business process to paperless. ATM.
The last but not the least important is the challenge to organize and implement information architecture and information technology platforms. considering multiple locations and multiple information needs arising due to global operations of the business into a comprehensive MIS. .
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